Boeing (BA) shares were facing the fallout after governments around the world grounded the company’s 737 MAX 8 aircraft following the fatal crash of an Ethiopian Airlines flight on Sunday, and airplane parts suppliers also were being dragged lower.
Shares of Spirit AeroSystems (SPR) fell 3.8%, Triumph Group (TGI) shares declined 4.2%, and Hexcel (HXL) slid 1.6%.
This is the second crash of a Boeing 737 MAX jetliner in six months. Lion Air Flight 610 crashed shortly after takeoff from Jakarta, Indonesia in October. A preliminary report from officials found that the plane, which has become Boeing’s fastest selling, wasn’t airworthy.
All 157 people aboard the Ethiopian Airlines flight were killed after the plane crashed en route to Nairobi, Kenya from Addis Ababa, Ethiopia.
The Civil Aviation Administration of China issued an order on Monday grounding the plane. Ethiopian Airlines also grounded its fleet of Boeing 737 MAX jets and Cayman Airways said it would do the same “until more information is received.”
Some domestic airlines were also feeling the pressure from Sunday’s crash, with Southwest Airlines (LUV) falling 0.8%, Alaska Airlines (ALK) falling more than 1%, and United (UAL) declining 0.4%.